HC Deb 27 July 1981 vol 9 c812
12. Mr. Greville Janner

asked the Secretary of State for Trade what were the levels of imports and exports to and from the United Kingdom of engineering products in the last 12 months.

Mr. Parkinson

Exports of the principal products of the mechanical, instrument and electrical engineering industries as defined in the standard industrial classification were £11,562 million for the year 1980. The corresponding figure for imports was £8,419 million.

Mr. Janner

In those circumstances does the Minister recognise the vital importance of the engineering industry to our economy and also, alongside the export credit, the awful state of the industry and the very high unemployment in it? In the light of that, will he consult the Defence Secretary about the sad prospect of the current Marconi Radar Sea Wolf project, in my constituency, being replaced by a Dutch designed and manufactured product of a lighter calibre?

Mr. Parkinson

I shall draw the hon. and learned Gentleman's remarks to the attention of my right hon. Friend the Secretary of State for Defence. I agree with him that the figures show the great importance of the engineering sector. They also highlight the importance of resisting pressure for protectionism. Were we to close our markets to other people's goods, the £3,000 million surplus that we have on exports could rapidly disappear.

Mr. Marlow

As a matter of passing interest to my constituents, who have lost some jobs in efficient industries as a result of West German competition, will my hon. Friend tell me how our balance of trade in engineering goods with Japan compares with our balance of trade in engineering goods with West Germany?

Mr. Parkinson

If my hon. Friend will table a question about that I shall be happy to give him the answer.

Mr. Nicholas Winterton

Bearing in mind the importance that the Minister has rightly given to the engineering industry, may I ask whether he is concerned that there is a growing trend in this country for engineering companies to export their manufacture, because of wages and industrial relations practices abroad, and merely to have companies in this country acting as distributors, where previously they had been manufacturers?

Mr. Parkinson

My hon. Friend has pointed to what he calls a trend in this country, but an industry that managed last year to export over £11,500 million of goods during a recession is still a very important industry. Large quantities of goods are being made here at a price that people overseas wish to pay. Goods of the right quality are still being produced here in large quantities.

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